Scree Plot

Figure 1. Scree plot
Line chart with eigenvalues on the vertical axis and components on the horizontal matrix showing a steep downward slope for the first three components

The scree plot helps you to determine the optimal number of components. The eigenvalue of each component in the initial solution is plotted. Generally, you want to extract the components on the steep slope. The components on the shallow slope contribute little to the solution. The last big drop occurs between the third and fourth components, so using the first three components is an easy choice.

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